Victims of fraud may soon be seeing green.
Fidelity Investments, the financial services firm, has agreed to pay a $2.5 million class-action settlement in response to claims it failed to prevent a 2024 data breach that compromised sensitive consumer information.
The hefty payout follows allegations that the company, headquartered in Boston, Massachusetts, failed to adhere to specific data security protocols, enabling a breach that reportedly exposed personal information of 77,000 customers and individuals.
The data breach could have been prevented if the company had taken reasonable cybersecurity precautions, the plaintiffs contend, according to reports.
Fidelity Investments has not admitted to wrongdoing, but has committed to paying up to $5,000 to folks with documentation, such as receipts, bills or other certified paperwork, providing monetary losses related to the breach.
Under the terms of the settlement, the losses include unreimbursed fraud or identity theft, professional fees and credit expenses, per Top Class Actions, a legal news and consumer resource hub.
Eligible recipients have received a notice from Fidelity informing them that their financial account number and routing number were compromised between Aug. 17 and 19, 2024.
All who issued a formal complaint against Fidelity may receive a cash payment of approximately $100, depending on the number of claims filed with the settlement.
Class members in California stand to receive an additional $50 Consumer Privacy Act payment.
Petitioners are also eligible for two years of identity theft protection and credit monitoring services, which include $1 million of fraud and identity theft insurance.
To receive the settlement benefits, class members must submit a valid claim form by July 27, 2026.
But Fidelity is far from the only major imprint inking a big check in the wake of costly claims.
Comcast just agreed to pay a $117.5 million settlement tied to a massive 2023 data breach that exposed sensitive customer information.
The whopping payday trails Apple’s promise to cover a $250 million settlement with iPhone users experiencing Siri AI delays, and Capital One’s deal to dish out a staggering $425 million in settlement funds following accusations it steered customers away from accounts that paid higher interest rates.
